Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 28, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MGRC | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | McGRATH RENTCORP | |
Entity Central Index Key | 0000752714 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock | |
Entity File Number | 000-13292 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-2579843 | |
Entity Address, Address Line One | 5700 Las Positas Road | |
Entity Address, City or Town | Livermore | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94551-7800 | |
City Area Code | 925 | |
Local Phone Number | 606-9200 | |
Entity Common Stock, Shares Outstanding | 24,083,096 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Rental | $ 85,629 | $ 88,105 | $ 175,135 | $ 170,801 |
Rental related services | 20,475 | 24,467 | 44,986 | 45,922 |
Rental operations | 106,104 | 112,572 | 220,121 | 216,723 |
Revenues | 47,005 | 32,724 | ||
Total revenues | 137,673 | 127,439 | 267,126 | 249,447 |
Direct costs of rental operations: | ||||
Depreciation of rental equipment | 21,583 | 19,726 | 43,221 | 38,687 |
Rental related services | 14,894 | 18,137 | 33,157 | 34,500 |
Other | 18,165 | 21,741 | 37,618 | 41,474 |
Total direct costs of rental operations | 54,642 | 59,604 | 113,996 | 114,661 |
Costs of sales | 19,799 | 7,954 | 28,242 | 17,900 |
Total costs of revenues | 74,441 | 67,558 | 142,238 | 132,561 |
Gross profit | 63,232 | 59,881 | 124,888 | 116,886 |
Selling and administrative expenses | 30,540 | 30,815 | 62,494 | 60,510 |
Income from operations | 32,692 | 29,066 | 62,394 | 56,376 |
Other income (expense): | ||||
Interest expense | (2,184) | (3,138) | (4,836) | (6,246) |
Foreign currency exchange gain (loss) | 117 | 37 | (319) | 86 |
Income before provision for income taxes | 30,625 | 25,965 | 57,239 | 50,216 |
Provision for income taxes | 8,076 | 6,477 | 14,531 | 12,279 |
Net income | $ 22,549 | $ 19,488 | $ 42,708 | $ 37,937 |
Earnings per share: | ||||
Basic | $ 0.93 | $ 0.80 | $ 1.76 | $ 1.57 |
Diluted | $ 0.92 | $ 0.79 | $ 1.74 | $ 1.54 |
Shares used in per share calculation: | ||||
Basic | 24,121 | 24,246 | 24,207 | 24,221 |
Diluted | 24,471 | 24,579 | 24,612 | 24,561 |
Cash dividends declared per share | $ 0.420 | $ 0.375 | $ 0.840 | $ 0.750 |
Sales [Member] | ||||
Revenues | ||||
Revenues | $ 30,669 | $ 13,707 | $ 45,035 | $ 30,532 |
Other [Member] | ||||
Revenues | ||||
Revenues | $ 900 | $ 1,160 | $ 1,970 | $ 2,192 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 22,549 | $ 19,488 | $ 42,708 | $ 37,937 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (52) | (6) | 158 | (40) |
Tax benefit (provision) | 15 | (37) | 7 | |
Comprehensive income | $ 22,512 | $ 19,482 | $ 42,829 | $ 37,904 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash | $ 694 | $ 2,342 |
Accounts receivable, net of allowance for doubtful accounts of $2,200 in 2020 and $1,883 in 2019 | 125,940 | 128,099 |
Rental equipment, at cost: | ||
Relocatable modular buildings | 892,339 | 868,807 |
Electronic test equipment | 337,987 | 335,343 |
Liquid and solid containment tanks and boxes | 316,497 | 316,261 |
Rental equipment, gross | 1,546,823 | 1,520,411 |
Less accumulated depreciation | (577,142) | (552,911) |
Rental equipment, net | 969,681 | 967,500 |
Property, plant and equipment, net | 133,610 | 131,047 |
Prepaid expenses and other assets | 46,997 | 45,356 |
Intangible assets, net | 7,223 | 7,334 |
Goodwill | 28,197 | 28,197 |
Total assets | 1,312,342 | 1,309,875 |
Liabilities: | ||
Notes payable | 272,149 | 293,431 |
Accounts payable and accrued liabilities | 116,825 | 109,174 |
Deferred income | 60,779 | 54,964 |
Deferred income taxes, net | 218,753 | 218,270 |
Total liabilities | 668,506 | 675,839 |
Shareholders’ equity: | ||
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,085 shares as of June 30, 2020 and 24,296 shares as of December 31, 2019 | 106,010 | 106,360 |
Retained earnings | 537,775 | 527,746 |
Accumulated other comprehensive income (loss) | 51 | (70) |
Total shareholders’ equity | 643,836 | 634,036 |
Total liabilities and shareholders’ equity | $ 1,312,342 | $ 1,309,875 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,200 | $ 1,883 |
Common stock, par value | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 24,085,000 | 24,296,000 |
Common Stock, shares outstanding | 24,085,000 | 24,296,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2018 | $ 571,535 | $ 103,801 | $ 467,783 | $ (49) |
Balance, Shares at Dec. 31, 2018 | 24,182,000 | |||
Net income | 18,449 | 18,449 | ||
Share-based compensation | 1,392 | $ 1,392 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 40,000 | |||
Taxes paid related to net share settlement of stock awards | (1,555) | $ (1,555) | ||
Dividends accrued of $0.42, $0.42, $0.375 and $0.375 per share for three months ended March 31, 2020, June 30, 2020 and three months ended March 31,2019, June 30, 2019 | (9,151) | (9,151) | ||
Other comprehensive gain (loss) | (27) | (27) | ||
Balance at Mar. 31, 2019 | 580,643 | $ 103,638 | 477,081 | (76) |
Balance, Shares at Mar. 31, 2019 | 24,222,000 | |||
Balance at Dec. 31, 2018 | 571,535 | $ 103,801 | 467,783 | (49) |
Balance, Shares at Dec. 31, 2018 | 24,182,000 | |||
Net income | 37,937 | |||
Balance at Jun. 30, 2019 | 592,309 | $ 104,984 | 487,407 | (82) |
Balance, Shares at Jun. 30, 2019 | 24,253,000 | |||
Balance at Mar. 31, 2019 | 580,643 | $ 103,638 | 477,081 | (76) |
Balance, Shares at Mar. 31, 2019 | 24,222,000 | |||
Net income | 19,488 | 19,488 | ||
Share-based compensation | 1,354 | $ 1,354 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 31,000 | |||
Taxes paid related to net share settlement of stock awards | (8) | $ (8) | ||
Dividends accrued of $0.42, $0.42, $0.375 and $0.375 per share for three months ended March 31, 2020, June 30, 2020 and three months ended March 31,2019, June 30, 2019 | (9,162) | (9,162) | ||
Other comprehensive gain (loss) | (6) | (6) | ||
Balance at Jun. 30, 2019 | 592,309 | $ 104,984 | 487,407 | (82) |
Balance, Shares at Jun. 30, 2019 | 24,253,000 | |||
Balance at Dec. 31, 2019 | $ 634,036 | $ 106,360 | 527,746 | (70) |
Balance, Shares at Dec. 31, 2019 | 24,296,000 | 24,296,000 | ||
Net income | $ 20,159 | 20,159 | ||
Share-based compensation | 1,723 | $ 1,723 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 50,000 | |||
Repurchased common stock | (7,852) | $ (725) | (7,127) | |
Repurchased common stock, Shares | (164,000) | |||
Taxes paid related to net share settlement of stock awards | (401) | $ (401) | ||
Dividends accrued of $0.42, $0.42, $0.375 and $0.375 per share for three months ended March 31, 2020, June 30, 2020 and three months ended March 31,2019, June 30, 2019 | (10,219) | (10,219) | ||
Other comprehensive gain (loss) | 158 | 158 | ||
Balance at Mar. 31, 2020 | 637,604 | $ 106,957 | 530,559 | 88 |
Balance, Shares at Mar. 31, 2020 | 24,182,000 | |||
Balance at Dec. 31, 2019 | $ 634,036 | $ 106,360 | 527,746 | (70) |
Balance, Shares at Dec. 31, 2019 | 24,296,000 | 24,296,000 | ||
Net income | $ 42,708 | |||
Balance at Jun. 30, 2020 | $ 643,836 | $ 106,010 | 537,775 | 51 |
Balance, Shares at Jun. 30, 2020 | 24,085,000 | 24,085,000 | ||
Balance at Mar. 31, 2020 | $ 637,604 | $ 106,957 | 530,559 | 88 |
Balance, Shares at Mar. 31, 2020 | 24,182,000 | |||
Net income | 22,549 | 22,549 | ||
Share-based compensation | 1,501 | $ 1,501 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 19,000 | |||
Repurchased common stock | (5,648) | $ (509) | (5,139) | |
Repurchased common stock, Shares | (116,000) | |||
Taxes paid related to net share settlement of stock awards | (1,939) | $ (1,939) | ||
Dividends accrued of $0.42, $0.42, $0.375 and $0.375 per share for three months ended March 31, 2020, June 30, 2020 and three months ended March 31,2019, June 30, 2019 | (10,194) | (10,194) | ||
Other comprehensive gain (loss) | (37) | (37) | ||
Balance at Jun. 30, 2020 | $ 643,836 | $ 106,010 | $ 537,775 | $ 51 |
Balance, Shares at Jun. 30, 2020 | 24,085,000 | 24,085,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Cash dividends declared per share | $ 0.420 | $ 0.375 | ||
Retained Earnings [Member] | ||||
Cash dividends declared per share | $ 0.42 | $ 0.42 | $ 0.375 | $ 0.375 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net income | $ 42,708 | $ 37,937 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 47,663 | 43,087 |
Provision for doubtful accounts | 833 | 371 |
Share-based compensation | 3,224 | 2,746 |
Gain on sale of used rental equipment | (9,602) | (9,168) |
Foreign currency exchange loss (gain) | 319 | (86) |
Amortization of debt issuance costs | 5 | 5 |
Change in: | ||
Accounts receivable | 1,326 | (373) |
Prepaid expenses and other assets | (1,641) | (21,246) |
Accounts payable and accrued liabilities | 6,389 | 18,468 |
Deferred income | 5,815 | 16,909 |
Deferred income taxes | 483 | 3,337 |
Net cash provided by operating activities | 97,522 | 91,987 |
Cash Flows from Investing Activities: | ||
Purchases of rental equipment | (57,564) | (90,701) |
Purchases of property, plant and equipment | (6,893) | (3,961) |
Proceeds from sales of used rental equipment | 21,921 | 18,280 |
Net cash used in investing activities | (42,536) | (76,382) |
Cash Flows from Financing Activities: | ||
Net (repayment) borrowing under bank lines of credit | (21,288) | 3,309 |
Repurchase of common stock | (13,501) | |
Taxes paid related to net share settlement of stock awards | (2,340) | (1,563) |
Payment of dividends | (19,526) | (17,337) |
Net cash used in financing activities | (56,655) | (15,591) |
Effect of foreign currency exchange rate changes on cash | 21 | (26) |
Net decrease in cash | (1,648) | (12) |
Cash balance, beginning of period | 2,342 | 1,508 |
Cash balance, end of period | 694 | 1,496 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid, during the period | 5,031 | 6,210 |
Net income taxes paid, during the period | 2,153 | 6,173 |
Dividends accrued during the period, not yet paid | 10,255 | 9,163 |
Rental equipment acquisitions, not yet paid | $ 6,654 | $ 8,930 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Condensed Consolidated Financial Information | NOTE 1. CONDENSED CONSOLIDATED FINANCIAL INFORMATION The condensed consolidated financial statements for the three and six months ended June 30, 2020 and 2019 have not been audited, but in the opinion of management, all adjustments (consisting of normal recurring accruals, consolidating and eliminating entries) necessary for the fair presentation of the consolidated financial position, results of operations and cash flows of McGrath RentCorp (the “Company”) have been made. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to those rules and regulations. The consolidated results for the three and six months ended June 30, 2020 should not be considered as necessarily indicative of the consolidated results for the entire fiscal year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K, filed with the SEC on February 25, 2020 for the year ended December 31, 2019 (the “2019 Annual Report”). |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, expected to reduce cost and complexity related to the accounting for income taxes. The ASU removes specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). It eliminates the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intra-period tax allocation; exceptions to accounting for basis differences when there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not subject to tax; and enacted changes in tax laws in interim periods. For public business entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is evaluating the impact of this guidance on its consolidated financial statements. |
Implemented Accounting Pronounc
Implemented Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Implemented Accounting Pronouncements | NOTE 3. IMPLEMENTED ACCOUNTING PRONOUNCEMENTS The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) effective January 1, 2020. Under the new guidance, companies are required to present financial assets held at amortized cost and available for sale debt securities net of the amount expected to be collected. The new guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. The adoption of this new guidance did not have a material impact on our condensed consolidated financial statements. Trade accounts receivable The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts receivable from operating lease and non-lease revenues. The Company regularly reviews the allowance by considering factors such as historical payment experience and trends, the age of the accounts receivable balances, the Company’s operating segment, customer industry, credit quality and current economic conditions that may affect a customer’s ability to pay. The Company recognized bad debt expense of $0.2 million and $0.8 million for the three and six months ended June 30, 2020, respectively. Bad debt expense for the three and six months ended June 30, 2019 was $0.2 million and $0.4 million, respectively. The allowance for doubtful accounts was $2.2 million and $1.9 million at June 30, 2020 and December 31, 2019, respectively. Net investment in sales-type leases The Company enters into sales-type leases with certain qualified customers to purchase its rental equipment, primarily at its TRS-RenTelco operating segment. Sales-type leases have terms that generally range from 12 to 36 months and are collateralized by a security interest in the underlying rental asset. The net investment in sales-type leases was $2.3 million at June 30, 2020 and $2.9 million at December 31, 2019. The Company’s assessment of current expected losses on these receivables was not material and no credit loss expense was provided as of June 30, 2020. The Company regularly reviews the allowance by considering factors such as historical payment experience, the age of the lease receivable balances, credit quality and current economic conditions that may affect a customer's ability to pay. Lease receivables are considered past due 90 days after invoice. The Company manages the credit risk in net investment in sales-type leases using a number of factors, including, but not limited to the following: historical payment history, credit score, size of operations, length of time in business, industry, historical profitability, historical cash flows, liquidity and past due amounts. The Company uses credit scores obtained from external credit bureaus as a key indicator for the purposes of determining credit quality of its new customers. The Company does not own available for sale debt securities or other financial assets at June 30 , 2020. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 4. REVENUE RECOGNITION The Company’s accounting for revenues is governed by two accounting standards. The majority of the Company’s revenues are considered lease or lease related and are accounted for in accordance with Topic 842, Leases. Revenues determined to be non-lease related are accounted for in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The Company accounts for revenues when approval and commitment from both parties have been obtained, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company typically recognizes non-lease related revenues at a point in time because the customer does not simultaneously consume the benefits of the Company’s promised goods and services, or performance obligations, and obtains control when delivery and installation are complete. For contracts that have multiple performance obligations, the transaction price is allocated to each performance obligation in the contract based on the Company’s best estimate of the standalone selling prices of each distinct performance obligation in the contract. The standalone selling price is typically determined based upon the expected cost plus an estimated margin of each performance obligation. The Company generally rents and sells to customers on 30 day payment terms. The Company does not typically offer variable payment terms, or accept non-monetary consideration. Amounts billed and due from the Company’s customers are classified as Accounts receivable on the Company’s consolidated balance sheet. For certain sales of modular buildings, progress payments from the customer are received during the manufacturing of new equipment, or the preparation of used equipment. The advance payments are not considered a significant financing component because the payments are used to meet working capital needs during the contract and to protect the Company from the customer failing to adequately complete their obligations under the contract. These contract liabilities are included in Deferred income on the Company’s consolidated balance sheet and totaled $29.5 million and $17.5 million at June 30, 2020 and December 31, 2019, respectively. Sales revenues totaling $5.7 million and $8.5 million were recognized during the three and six months ended June 30, 2020, respectively, which were included in the contract liability balance at December 31, 2019. For certain modular building sales, the customer retains a small portion of the contract price until full completion of the contract, which results in revenue earned in excess of billings. These unbilled contract assets are included in Accounts receivable on the Company’s consolidated balance sheet and totaled $1.2 million and $1.0 million at June 30, 2020 and December 31, 2019, respectively. Lease Revenues Rental revenues from operating leases are recognized on a straight-line basis over the term of the lease for all operating segments. Rental billings for periods extending beyond period end are recorded as deferred income and are recognized in the period earned. Rental related services revenues are primarily associated with relocatable modular buildings and liquid and solid containment tanks and boxes leases. For modular building leases, rental related services revenues for modifications, delivery, installation, dismantle and return delivery are lease related because the payments are considered minimum lease payments that are an integral part of the negotiated lease agreement with the customer. These revenues are recognized on a straight-line basis over the term of the lease. Certain leases are accounted for as finance leases. For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment. Other revenues include interest income on finance leases and rental income on facility leases. In the three and six months ended June 30, 2020, the Company’s lease revenues were $97.9 million and $200.1 million, respectively, consisting of $97.2 million and $198.9 million of operating lease revenues, respectively, and $0.7 million and $1.2 million of finance lease revenues, respectively. The Company has entered into finance leases to finance certain equipment sales to customers. The lease agreements have a bargain purchase option at the end of the lease term. For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a straight-line basis, which results in a constant rate of return on the unrecovered lease investment. The Company’s finance lease revenues for the six months ended June 30, 2020 include $1.0 million of sales revenues and $0.2 million of interest income. Non-Lease Revenues Non-lease revenues are recognized in the period when control of the performance obligation is transferred, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. For liquid and solid containment solutions, portable storage containers and electronic test equipment, rental related services revenues for delivery and return delivery are considered non-lease revenues. Sales revenues are typically recognized at a point in time, which occurs upon the completion of delivery, installation and acceptance of the equipment by the customer. Accounting for non-lease revenues requires judgment in determining the point in time the customer gains control of the equipment and the appropriate accounting period to recognize revenue. Sales taxes charged to customers are reported on a net basis and are excluded from revenues and expenses. The following table disaggregates the Company’s revenues by lease (within the scope of Topic 842) and non-lease revenues (within the scope of Topic 606) and the underlying service provided for the three months and six months ended June 30, 2020 and 2019: (in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex Consolidated Three Months Ended June 30, 2020 Leasing $ 57,890 $ 26,837 $ 13,145 $ — $ 97,872 Non-lease: Rental related services 3,533 563 5,256 — 9,352 Sales 15,316 5,336 232 9,199 30,083 Other 23 343 — — 366 Total non-lease 18,872 6,242 5,488 9,199 39,801 Total revenues $ 76,762 $ 33,079 $ 18,633 $ 9,199 $ 137,673 2019 Leasing $ 56,732 $ 26,486 $ 18,213 $ — $ 101,431 Non-lease: Rental related services 4,242 672 7,461 — 12,375 Sales 6,725 4,642 593 1,072 13,032 Other 23 510 68 — 601 Total non-lease 10,990 5,824 8,122 1,072 26,008 Total revenues $ 67,722 $ 32,310 $ 26,335 $ 1,072 $ 127,439 Six Months Ended June 30, 2020 Leasing $ 117,126 $ 55,057 $ 27,926 $ — $ 200,109 Non-lease: Rental related services 10,223 1,282 10,645 — 22,150 Sales 22,572 10,008 730 10,702 44,012 Other 39 795 21 — 855 Total non-lease 32,834 12,085 11,396 10,702 67,017 Total revenues $ 149,960 $ 67,142 $ 39,322 $ 10,702 $ 267,126 2019 Leasing $ 110,476 $ 51,166 $ 35,297 $ — $ 196,939 Non-lease: Rental related services 7,546 1,241 13,543 — 22,330 Sales 14,725 9,621 863 3,877 29,086 Other 67 958 67 — 1,092 Total non-lease 22,338 11,820 14,473 3,877 52,508 Total revenues $ 132,814 $ 62,986 $ 49,770 $ 3,877 $ 249,447 Customer returns of rental equipment prior to the end of the rental contract term are typically billed a cancellation fee, which is recorded as rental revenue in the period billed. Sales of new relocatable modular buildings, portable storage containers, electronic test equipment and related accessories and liquid and solid containment tanks and boxes not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold. The Company typically provides limited 90-day warranties for certain sales of used rental equipment and one-year Company’s policy is to provide reserves for warranties when required for specific circumstances, the Company has not found it necessary to establish such reserves to date as warranty costs have not been significant. The Company’s incremental cost of obtaining lease contracts, which consists of salesperson commissions, are deferred and amortized over the initial lease term for modular leases. Incremental costs for obtaining a contract for all other operating segments are expensed in the period incurred because the lease term is typically less than 12 months. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 5. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed as net income divided by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is computed assuming conversion of all potentially dilutive securities including the dilutive effect of stock options, unvested restricted stock awards and other potentially dilutive securities. The table below presents the weighted-average number of shares of common stock used to calculate basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Weighted-average number of shares of common stock for calculating basic earnings per share 24,121 24,246 24,207 24,221 Effect of potentially dilutive securities from equity-based compensation 350 333 405 340 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,471 24,579 24,612 24,561 There were no anti-dilutive securities excluded from the computation of diluted earnings per share in the three and six months ended June 30, 2020 and 2019. The Company has made purchases of shares of its common stock from time to time in over-the-counter market (NASDAQ) transactions, through privately negotiated, large block transactions and through a share repurchase plan, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. In August 2015, the Company’s Board of Directors authorized the Company to repurchase up to 2,000,000 shares of the Company's outstanding common stock (the “Repurchase Plan”). The amount and time of the specific repurchases are subject to prevailing market conditions, applicable legal requirements and other factors, including management’s discretion. All shares repurchased by the Company are canceled and returned to the status of authorized but unissued shares of common stock. There can be no assurance that any authorized shares will be repurchased and the Repurchase Plan may be modified, extended or terminated by the Board of Directors at any time. The following table presents share repurchase activities during the three and six months ended June 30, 2020 and 2019. As of June 30, 2020, 1,312,160 shares remained authorized for repurchase under the Repurchase Plan. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share amounts) 2020 2019 2020 2019 Number of shares repurchased 115,920 — 279,866 — Aggregate purchase price $ 5,648 $ — $ 13,500 $ — Average price per repurchased shares $ 48.72 $ — $ 48.24 $ — |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 6. INTANGIBLE ASSETS Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years June 30, 2020 December 31, 2019 Trade name Indefinite $ 5,871 $ 5,871 Customer relationships 11 10,644 10,644 Non-compete agreements 5 157 157 16,672 16,672 Less accumulated amortization (9,449 ) (9,338 ) $ 7,223 $ 7,334 The Company assesses potential impairment of its goodwill and intangible assets when there is evidence that events or circumstances have occurred that would indicate the recovery of an asset’s carrying value is unlikely. The Company also assesses potential impairment of its goodwill and intangible assets on an annual basis regardless of whether there is evidence of impairment. If indicators of impairment were to be present in intangible assets used in operations and future discounted cash flows were not expected to be sufficient to recover the asset’s carrying amount, an impairment loss would be charged to expense in the period identified. The amount of an impairment loss that would be recognized is the excess of the asset’s carrying value over its fair value. Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results. In response to the COVID-19 pandemic, the Company last conducted a qualitative analysis of its goodwill and intangible assets in the first quarter 2020 and determined that no impairment triggering event had occurred. Intangible assets with finite useful lives are amortized over their respective useful lives. Based on the carrying values at June 30, 2020 and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be $0.1 million for the remainder of fiscal year 2020, and $0.2 million in 2021 through 2026. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 7. SEGMENT REPORTING The Company’s four reportable segments are (1) its modular building and portable storage container rental segment (“Mobile Modular”); (2) its electronic test equipment segment (“TRS-RenTelco”); (3) its containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (“Adler Tanks”); and (4) its classroom manufacturing segment selling modular buildings used primarily as classrooms in California (“Enviroplex”). The operations of each of these segments are described in Part I – Item 1, “Business,” and the accounting policies of the segments are described in “Note 1 – Summary of Significant Accounting Policies” in the Company’s 2019 Annual Report. Management focuses on several key measures to evaluate and assess each segment’s performance, including rental revenue growth, gross profit, income from operations and income before provision for income taxes. Excluding interest expense, allocations of revenue and expense not directly associated with one of these segments are generally allocated to Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of direct revenues. Interest expense is allocated among Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of average rental equipment at cost, intangible assets, accounts receivable, deferred income and customer security deposits. The Company does not report total assets by business segment. Summarized financial information for the six months ended June 30, 2020 and 2019 for the Company’s reportable segments is shown in the following table: (dollar amounts in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex 1 Consolidated Six Months Ended June 30, 2020 Rental revenues $ 94,038 $ 53,548 $ 27,549 $ — $ 175,135 Rental related services revenues 32,607 1,496 10,883 — 44,986 Sales and other revenues 23,315 12,098 890 10,702 47,005 Total revenues 149,960 67,142 39,322 10,702 267,126 Depreciation of rental equipment 11,406 23,582 8,233 — 43,221 Gross profit 74,301 28,958 17,576 4,053 124,888 Selling and administrative expenses 34,275 12,236 13,177 2,806 62,494 Income from operations 40,026 16,722 4,399 1,247 62,394 Interest (expense) income allocation (2,826 ) (1,147 ) (1,179 ) 316 (4,836 ) Income before provision for income taxes 37,200 15,256 3,220 1,563 57,239 Rental equipment acquisitions 33,650 22,661 1,410 — 57,721 Accounts receivable, net (period end) 82,110 22,211 13,976 7,643 125,940 Rental equipment, at cost (period end) 892,339 337,987 316,497 — 1,546,823 Rental equipment, net book value (period end) 624,971 166,996 177,714 — 969,681 Utilization (period end) 2 76.8 % 65.7 % 43.1 % Average utilization 2 78.2 % 64.7 % 45.9 % 2019 Rental revenues $ 86,998 $ 49,112 $ 34,691 $ — $ 170,801 Rental related services revenues 30,372 1,562 13,988 — 45,922 Sales and other revenues 15,444 12,312 1,091 3,877 32,724 Total revenues 132,814 62,986 49,770 3,877 249,447 Depreciation of rental equipment 10,877 19,684 8,126 — 38,687 Gross profit 62,865 28,492 24,086 1,443 116,886 Selling and administrative expenses 31,047 12,063 14,894 2,506 60,510 Income (loss) from operations 31,818 16,429 9,192 (1,063 ) 56,376 Interest (expense) income allocation (3,761 ) (1,385 ) (1,646 ) 546 (6,246 ) Income (loss) before provision for income taxes 28,057 15,130 7,546 (517 ) 50,216 Rental equipment acquisitions 43,614 42,999 3,327 — 89,940 Accounts receivable, net (period end) 75,633 21,212 20,106 4,067 121,018 Rental equipment, at cost (period end) 854,076 307,639 315,571 — 1,477,286 Rental equipment, net book value (period end) 600,351 150,655 192,146 — 943,152 Utilization (period end) 2 79.6 % 67.3 % 55.3 % Average utilization 2 79.1 % 65.7 % 57.1 % 1 . Gross Enviroplex sales revenues were $11,979 and $3,877 for the six months ended June 30, 2020 and 2019, respectively. There were 1,277 2. Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment, excluding accessory equipment, and for Mobile Modular and Adler Tanks, excluding new equipment inventory. The Average utilization for the period is calculated using the average costs of rental equipment . No single customer accounted for more than 10% of total revenues for the six months ended June 30, 2020 and 2019. Revenues from foreign country customers accounted for 2% and 4% of the Company’s total revenues for the same periods, respectively. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disaggregation Of Revenue [Abstract] | |
Summary of Disaggregates the Company's Revenue by Lease and Non Lease | The following table disaggregates the Company’s revenues by lease (within the scope of Topic 842) and non-lease revenues (within the scope of Topic 606) and the underlying service provided for the three months and six months ended June 30, 2020 and 2019: (in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex Consolidated Three Months Ended June 30, 2020 Leasing $ 57,890 $ 26,837 $ 13,145 $ — $ 97,872 Non-lease: Rental related services 3,533 563 5,256 — 9,352 Sales 15,316 5,336 232 9,199 30,083 Other 23 343 — — 366 Total non-lease 18,872 6,242 5,488 9,199 39,801 Total revenues $ 76,762 $ 33,079 $ 18,633 $ 9,199 $ 137,673 2019 Leasing $ 56,732 $ 26,486 $ 18,213 $ — $ 101,431 Non-lease: Rental related services 4,242 672 7,461 — 12,375 Sales 6,725 4,642 593 1,072 13,032 Other 23 510 68 — 601 Total non-lease 10,990 5,824 8,122 1,072 26,008 Total revenues $ 67,722 $ 32,310 $ 26,335 $ 1,072 $ 127,439 Six Months Ended June 30, 2020 Leasing $ 117,126 $ 55,057 $ 27,926 $ — $ 200,109 Non-lease: Rental related services 10,223 1,282 10,645 — 22,150 Sales 22,572 10,008 730 10,702 44,012 Other 39 795 21 — 855 Total non-lease 32,834 12,085 11,396 10,702 67,017 Total revenues $ 149,960 $ 67,142 $ 39,322 $ 10,702 $ 267,126 2019 Leasing $ 110,476 $ 51,166 $ 35,297 $ — $ 196,939 Non-lease: Rental related services 7,546 1,241 13,543 — 22,330 Sales 14,725 9,621 863 3,877 29,086 Other 67 958 67 — 1,092 Total non-lease 22,338 11,820 14,473 3,877 52,508 Total revenues $ 132,814 $ 62,986 $ 49,770 $ 3,877 $ 249,447 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Weighted-Average Number of Shares of Common Stock Used to Calculate Basic and Diluted Earnings Per Share | The table below presents the weighted-average number of shares of common stock used to calculate basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Weighted-average number of shares of common stock for calculating basic earnings per share 24,121 24,246 24,207 24,221 Effect of potentially dilutive securities from equity-based compensation 350 333 405 340 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,471 24,579 24,612 24,561 |
Summary of Share Repurchase Activity | The following table presents share repurchase activities during the three and six months ended June 30, 2020 and 2019. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share amounts) 2020 2019 2020 2019 Number of shares repurchased 115,920 — 279,866 — Aggregate purchase price $ 5,648 $ — $ 13,500 $ — Average price per repurchased shares $ 48.72 $ — $ 48.24 $ — |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years June 30, 2020 December 31, 2019 Trade name Indefinite $ 5,871 $ 5,871 Customer relationships 11 10,644 10,644 Non-compete agreements 5 157 157 16,672 16,672 Less accumulated amortization (9,449 ) (9,338 ) $ 7,223 $ 7,334 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summarized Financial Information for Company's Reportable Segments | Summarized financial information for the six months ended June 30, 2020 and 2019 for the Company’s reportable segments is shown in the following table: (dollar amounts in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex 1 Consolidated Six Months Ended June 30, 2020 Rental revenues $ 94,038 $ 53,548 $ 27,549 $ — $ 175,135 Rental related services revenues 32,607 1,496 10,883 — 44,986 Sales and other revenues 23,315 12,098 890 10,702 47,005 Total revenues 149,960 67,142 39,322 10,702 267,126 Depreciation of rental equipment 11,406 23,582 8,233 — 43,221 Gross profit 74,301 28,958 17,576 4,053 124,888 Selling and administrative expenses 34,275 12,236 13,177 2,806 62,494 Income from operations 40,026 16,722 4,399 1,247 62,394 Interest (expense) income allocation (2,826 ) (1,147 ) (1,179 ) 316 (4,836 ) Income before provision for income taxes 37,200 15,256 3,220 1,563 57,239 Rental equipment acquisitions 33,650 22,661 1,410 — 57,721 Accounts receivable, net (period end) 82,110 22,211 13,976 7,643 125,940 Rental equipment, at cost (period end) 892,339 337,987 316,497 — 1,546,823 Rental equipment, net book value (period end) 624,971 166,996 177,714 — 969,681 Utilization (period end) 2 76.8 % 65.7 % 43.1 % Average utilization 2 78.2 % 64.7 % 45.9 % 2019 Rental revenues $ 86,998 $ 49,112 $ 34,691 $ — $ 170,801 Rental related services revenues 30,372 1,562 13,988 — 45,922 Sales and other revenues 15,444 12,312 1,091 3,877 32,724 Total revenues 132,814 62,986 49,770 3,877 249,447 Depreciation of rental equipment 10,877 19,684 8,126 — 38,687 Gross profit 62,865 28,492 24,086 1,443 116,886 Selling and administrative expenses 31,047 12,063 14,894 2,506 60,510 Income (loss) from operations 31,818 16,429 9,192 (1,063 ) 56,376 Interest (expense) income allocation (3,761 ) (1,385 ) (1,646 ) 546 (6,246 ) Income (loss) before provision for income taxes 28,057 15,130 7,546 (517 ) 50,216 Rental equipment acquisitions 43,614 42,999 3,327 — 89,940 Accounts receivable, net (period end) 75,633 21,212 20,106 4,067 121,018 Rental equipment, at cost (period end) 854,076 307,639 315,571 — 1,477,286 Rental equipment, net book value (period end) 600,351 150,655 192,146 — 943,152 Utilization (period end) 2 79.6 % 67.3 % 55.3 % Average utilization 2 79.1 % 65.7 % 57.1 % 1 . Gross Enviroplex sales revenues were $11,979 and $3,877 for the six months ended June 30, 2020 and 2019, respectively. There were 1,277 2. Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment, excluding accessory equipment, and for Mobile Modular and Adler Tanks, excluding new equipment inventory. The Average utilization for the period is calculated using the average costs of rental equipment . |
Implemented Accounting Pronou_2
Implemented Accounting Pronouncements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Bad debt expense | $ 200,000 | $ 200,000 | $ 833,000 | $ 371,000 | |
Allowance for doubtful accounts | 2,200,000 | 2,200,000 | $ 1,883,000 | ||
Net investment in sales-type leases | $ 2,300,000 | 2,300,000 | $ 2,900,000 | ||
Credit loss expense | $ 0 | ||||
Minimum [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Sales-type leases terms | 12 months | 12 months | |||
Maximum [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Sales-type leases terms | 36 months | 36 months |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Period for credit risk identified | 30 days | ||
Sales revenues totaling | $ 5.7 | $ 8.5 | |
Lease revenue | 97.9 | 200.1 | |
Operating lease revenue | 97.2 | 198.9 | |
Finance lease revenue | 0.7 | 1.2 | |
Finance lease revenue, sales revenue | 1 | ||
Finance lease revenue, interest income | $ 0.2 | ||
Period for warranties for rental equipment | 90 days | ||
Period for warranties for equipment manufactured | 1 year | ||
Deferred Income [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Customer contract liability | 29.5 | $ 29.5 | $ 17.5 |
Accounts Receivable [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Unbilled contract assets | $ 1.2 | $ 1.2 | $ 1 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregates the Company's Revenue by Lease and Non Lease (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||||
Disaggregation Of Revenue [Line Items] | |||||||
Leasing revenues | $ 97,900 | $ 200,100 | |||||
Total non-lease revenues | 47,005 | $ 32,724 | |||||
Total revenues | 137,673 | $ 127,439 | 267,126 | 249,447 | |||
Leasing [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Leasing revenues | 97,872 | 101,431 | 200,109 | 196,939 | |||
Non-lease Rental Related Services [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 9,352 | 12,375 | 22,150 | 22,330 | |||
Non-lease Sales [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 30,083 | 13,032 | 44,012 | 29,086 | |||
Non-lease Other [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 366 | 601 | 855 | 1,092 | |||
Non-lease Revenues [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 39,801 | 26,008 | 67,017 | 52,508 | |||
Mobile Modular [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 23,315 | 15,444 | |||||
Total revenues | 76,762 | 67,722 | 149,960 | 132,814 | |||
Mobile Modular [Member] | Leasing [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Leasing revenues | 57,890 | 56,732 | 117,126 | 110,476 | |||
Mobile Modular [Member] | Non-lease Rental Related Services [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 3,533 | 4,242 | 10,223 | 7,546 | |||
Mobile Modular [Member] | Non-lease Sales [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 15,316 | 6,725 | 22,572 | 14,725 | |||
Mobile Modular [Member] | Non-lease Other [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 23 | 23 | 39 | 67 | |||
Mobile Modular [Member] | Non-lease Revenues [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 18,872 | 10,990 | 32,834 | 22,338 | |||
TRS-RenTelco [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 12,098 | 12,312 | |||||
Total revenues | 33,079 | 32,310 | 67,142 | 62,986 | |||
TRS-RenTelco [Member] | Leasing [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Leasing revenues | 26,837 | 26,486 | 55,057 | 51,166 | |||
TRS-RenTelco [Member] | Non-lease Rental Related Services [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 563 | 672 | 1,282 | 1,241 | |||
TRS-RenTelco [Member] | Non-lease Sales [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 5,336 | 4,642 | 10,008 | 9,621 | |||
TRS-RenTelco [Member] | Non-lease Other [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 343 | 510 | 795 | 958 | |||
TRS-RenTelco [Member] | Non-lease Revenues [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 6,242 | 5,824 | 12,085 | 11,820 | |||
Adler Tanks [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 890 | 1,091 | |||||
Total revenues | 18,633 | 26,335 | 39,322 | 49,770 | |||
Adler Tanks [Member] | Leasing [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Leasing revenues | 13,145 | 18,213 | 27,926 | 35,297 | |||
Adler Tanks [Member] | Non-lease Rental Related Services [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 5,256 | 7,461 | 10,645 | 13,543 | |||
Adler Tanks [Member] | Non-lease Sales [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 232 | 593 | 730 | 863 | |||
Adler Tanks [Member] | Non-lease Other [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 68 | 21 | 67 | ||||
Adler Tanks [Member] | Non-lease Revenues [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 5,488 | 8,122 | 11,396 | 14,473 | |||
Enviroplex [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | [1] | 10,702 | 3,877 | ||||
Total revenues | 9,199 | 1,072 | 10,702 | [1] | 3,877 | [1] | |
Enviroplex [Member] | Non-lease Sales [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | 9,199 | 1,072 | 10,702 | 3,877 | |||
Enviroplex [Member] | Non-lease Revenues [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total non-lease revenues | $ 9,199 | $ 1,072 | $ 10,702 | $ 3,877 | |||
[1] | Gross Enviroplex sales revenues were $11,979 and $3,877 for the six months ended June 30, 2020 and 2019, respectively. There were 1,277 |
Earnings Per Share - Weighted-A
Earnings Per Share - Weighted-Average Number of Shares of Common Stock Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of shares of common stock for calculating basic earnings per share | 24,121 | 24,246 | 24,207 | 24,221 |
Effect of potentially dilutive securities from equity-based compensation | 350 | 333 | 405 | 340 |
Weighted-average number of shares of common stock for calculating diluted earnings per share | 24,471 | 24,579 | 24,612 | 24,561 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Aug. 31, 2015 | |
Earnings Per Share Basic [Line Items] | |||||
Anti-dilutive securities excluded from computation of diluted earnings per share | 0 | 0 | 0 | 0 | |
Shares remain authorized for repurchase | 1,312,160 | 1,312,160 | |||
Maximum [Member] | |||||
Earnings Per Share Basic [Line Items] | |||||
Common stock shares authorized for repurchase | 2,000,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Share Repurchase Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Number of shares repurchased | 115,920 | 279,866 |
Aggregate purchase price | $ 5,648 | $ 13,500 |
Average price per repurchased shares | $ 48.72 | $ 48.24 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Trade name | $ 5,871 | $ 5,871 |
Customer relationships | 10,644 | 10,644 |
Non-compete agreements | 157 | 157 |
Intangible Assets, gross | 16,672 | 16,672 |
Less accumulated amortization | (9,449) | (9,338) |
Intangible Assets, net | $ 7,223 | $ 7,334 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life in years | 11 years | |
Non-compete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life in years | 5 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Finite Lived Intangible Assets [Line Items] | ||
Subsequent impairment of the underlying assets | $ 0 | |
Expected annual amortization expense for 2020 | $ 100,000 | 100,000 |
Expected annual amortization expense for 2021 | 200,000 | 200,000 |
Expected annual amortization expense for 2022 | 200,000 | 200,000 |
Expected annual amortization expense for 2023 | 200,000 | 200,000 |
Expected annual amortization expense for 2024 | 200,000 | 200,000 |
Expected annual amortization expense for 2025 | 200,000 | 200,000 |
Expected annual amortization expense for 2026 | 200,000 | $ 200,000 |
COVID-19 [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Impairment charge | $ 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2020SegmentCustomer | Jun. 30, 2019Customer | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 4 | |
Customer Concentration Risk [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of major customer | Customer | 0 | 0 |
Geographic Concentration Risk [Member] | Sales [Member] | Foreign Country Customers [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 2.00% | 4.00% |
Segment Reporting - Summarized
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||||
Segment Reporting Information [Line Items] | ||||||||
Rental revenues | $ 85,629 | $ 88,105 | $ 175,135 | $ 170,801 | ||||
Rental related services revenues | 20,475 | 24,467 | 44,986 | 45,922 | ||||
Sales and other revenues | 47,005 | 32,724 | ||||||
Total revenues | 137,673 | 127,439 | 267,126 | 249,447 | ||||
Depreciation of rental equipment | 21,583 | 19,726 | 43,221 | 38,687 | ||||
Gross profit | 63,232 | 59,881 | 124,888 | 116,886 | ||||
Selling and administrative expenses | 30,540 | 30,815 | 62,494 | 60,510 | ||||
Income from operations | 32,692 | 29,066 | 62,394 | 56,376 | ||||
Interest (expense) income allocation | (4,836) | (6,246) | ||||||
Income (loss) before provision for income taxes | 30,625 | 25,965 | 57,239 | 50,216 | ||||
Rental equipment acquisitions | 57,721 | 89,940 | ||||||
Accounts receivable, net (period end) | 125,940 | 121,018 | 125,940 | 121,018 | $ 128,099 | |||
Rental equipment, at cost (period end) | 1,546,823 | 1,477,286 | 1,546,823 | 1,477,286 | 1,520,411 | |||
Rental equipment, net book value (period end) | 969,681 | 943,152 | 969,681 | 943,152 | $ 967,500 | |||
Mobile Modular [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Rental revenues | 94,038 | 86,998 | ||||||
Rental related services revenues | 32,607 | 30,372 | ||||||
Sales and other revenues | 23,315 | 15,444 | ||||||
Total revenues | 76,762 | 67,722 | 149,960 | 132,814 | ||||
Depreciation of rental equipment | 11,406 | 10,877 | ||||||
Gross profit | 74,301 | 62,865 | ||||||
Selling and administrative expenses | 34,275 | 31,047 | ||||||
Income from operations | 40,026 | 31,818 | ||||||
Interest (expense) income allocation | (2,826) | (3,761) | ||||||
Income (loss) before provision for income taxes | 37,200 | 28,057 | ||||||
Rental equipment acquisitions | 33,650 | 43,614 | ||||||
Accounts receivable, net (period end) | 82,110 | 75,633 | 82,110 | 75,633 | ||||
Rental equipment, at cost (period end) | 892,339 | 854,076 | 892,339 | 854,076 | ||||
Rental equipment, net book value (period end) | 624,971 | 600,351 | $ 624,971 | $ 600,351 | ||||
Utilization (period end) | [1] | 76.80% | 79.60% | |||||
Average utilization | [1] | 78.20% | 79.10% | |||||
TRS-RenTelco [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Rental revenues | $ 53,548 | $ 49,112 | ||||||
Rental related services revenues | 1,496 | 1,562 | ||||||
Sales and other revenues | 12,098 | 12,312 | ||||||
Total revenues | 33,079 | 32,310 | 67,142 | 62,986 | ||||
Depreciation of rental equipment | 23,582 | 19,684 | ||||||
Gross profit | 28,958 | 28,492 | ||||||
Selling and administrative expenses | 12,236 | 12,063 | ||||||
Income from operations | 16,722 | 16,429 | ||||||
Interest (expense) income allocation | (1,147) | (1,385) | ||||||
Income (loss) before provision for income taxes | 15,256 | 15,130 | ||||||
Rental equipment acquisitions | 22,661 | 42,999 | ||||||
Accounts receivable, net (period end) | 22,211 | 21,212 | 22,211 | 21,212 | ||||
Rental equipment, at cost (period end) | 337,987 | 307,639 | 337,987 | 307,639 | ||||
Rental equipment, net book value (period end) | 166,996 | 150,655 | $ 166,996 | $ 150,655 | ||||
Utilization (period end) | [1] | 65.70% | 67.30% | |||||
Average utilization | [1] | 64.70% | 65.70% | |||||
Adler Tanks [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Rental revenues | $ 27,549 | $ 34,691 | ||||||
Rental related services revenues | 10,883 | 13,988 | ||||||
Sales and other revenues | 890 | 1,091 | ||||||
Total revenues | 18,633 | 26,335 | 39,322 | 49,770 | ||||
Depreciation of rental equipment | 8,233 | 8,126 | ||||||
Gross profit | 17,576 | 24,086 | ||||||
Selling and administrative expenses | 13,177 | 14,894 | ||||||
Income from operations | 4,399 | 9,192 | ||||||
Interest (expense) income allocation | (1,179) | (1,646) | ||||||
Income (loss) before provision for income taxes | 3,220 | 7,546 | ||||||
Rental equipment acquisitions | 1,410 | 3,327 | ||||||
Accounts receivable, net (period end) | 13,976 | 20,106 | 13,976 | 20,106 | ||||
Rental equipment, at cost (period end) | 316,497 | 315,571 | 316,497 | 315,571 | ||||
Rental equipment, net book value (period end) | 177,714 | 192,146 | $ 177,714 | $ 192,146 | ||||
Utilization (period end) | [1] | 43.10% | 55.30% | |||||
Average utilization | [1] | 45.90% | 57.10% | |||||
Enviroplex [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales and other revenues | [2] | $ 10,702 | $ 3,877 | |||||
Total revenues | 9,199 | 1,072 | 10,702 | [2] | 3,877 | [2] | ||
Gross profit | [2] | 4,053 | 1,443 | |||||
Selling and administrative expenses | [2] | 2,806 | 2,506 | |||||
Income from operations | [2] | 1,247 | (1,063) | |||||
Interest (expense) income allocation | [2] | 316 | 546 | |||||
Income (loss) before provision for income taxes | [2] | 1,563 | (517) | |||||
Accounts receivable, net (period end) | [2] | $ 7,643 | $ 4,067 | $ 7,643 | $ 4,067 | |||
[1] | Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment, excluding accessory equipment, and for Mobile Modular and Adler Tanks, excluding new equipment inventory. The Average utilization for the period is calculated using the average costs of rental equipment . | |||||||
[2] | Gross Enviroplex sales revenues were $11,979 and $3,877 for the six months ended June 30, 2020 and 2019, respectively. There were 1,277 |
Segment Reporting - Summarize_2
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 137,673,000 | $ 127,439,000 | $ 267,126,000 | $ 249,447,000 | |||
Sales revenues | (47,005,000) | (32,724,000) | |||||
Sales [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales revenues | (30,669,000) | (13,707,000) | (45,035,000) | (30,532,000) | |||
Enviroplex [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 9,199,000 | 1,072,000 | 10,702,000 | [1] | 3,877,000 | [1] | |
Sales revenues | [1] | (10,702,000) | (3,877,000) | ||||
Mobile Modular [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 76,762,000 | $ 67,722,000 | 149,960,000 | 132,814,000 | |||
Sales revenues | (23,315,000) | (15,444,000) | |||||
Operating Segments [Member] | Enviroplex [Member] | Sales [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 11,979,000 | 3,877,000 | |||||
Inter-segment Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales revenues | $ 0 | ||||||
Type of Revenue [Extensible List] | us-gaap:ProductMember | ||||||
Inter-segment Eliminations [Member] | Mobile Modular [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales revenues | $ 1,277,000 | ||||||
Type of Revenue [Extensible List] | us-gaap:ProductMember | ||||||
[1] | Gross Enviroplex sales revenues were $11,979 and $3,877 for the six months ended June 30, 2020 and 2019, respectively. There were 1,277 |